Further amendments were made to the Prospectus Exemptions on July 7th 2016. The Ontario Securities Commission has introduced a new harmonized report of exempt distribution. The amendment aims to reduce reporting requirements for foreign issuers conducting offerings into Canada and creates a new reporting form (Form 45 -106F1). Previously, all issuers and underwriters were required to identify whether a purchaser is a registrant or an insider of the issuer. The amendment now excludes certain issuers from this reporting requirement. Those issuers who are (a) a foreign public issuer, (b) a wholly owned subsidiary of a foreign public issuer or (c) distributing eligible foreign securities only to permitted clients will not need to disclose whether a purchaser is a registrant or an insider of the issuer.
The amendment follows concerns expressed by foreign issuers and dealers conducting offerings into Canada about the reporting requirements. Following the amendment and relaxed reporting requirements offerings into Canada should appeal to foreign issuers and dealers.
If you have any questions or would like more information regarding the Exempt Market or Private Placement Exemptions, call or email Koby Smutylo at 613 869 5440 or koby@lawyercorporation.ca.
The Prospectus and Registration Exemptions can be found online here and links to amendments and announcements from the commission can be found here.
